Edmond de Rothschild REIM stays positive on equities after US midterms
SPY•Edmond de Rothschild REIM remains positive on equities despite uncertainty over data center regulation after Democratic gains in US midterm elections.
1. Equity outlook
Local votes covering 170 GW of the 300 GW US planned data center capacity pipeline produced around 20 measures restricting new data centers. The Nasdaq fell 2% and South Korea’s Kospi dropped 4% before both recovered their losses; Edmond de Rothschild said solid global growth, strong corporate earnings and attractive valuations support equities, while divided government could limit fiscal expansion and ease upward pressure on US sovereign bond yields.
